More than a buzzword, sustainability has become the internal operating system for BRAC Bank, shaping its risk decisions, lending priorities, and long-term strategy.
This shift, evident in the bank’s improving position in the Bloomberg Environmental, Social, and Governance (ESG) Rating, reflects a continuous institutional redesign with sustainability at its core.
“Sustainability today is not an optional add-on for financial institutions. It is a fundamental shift shaping how banks operate, make decisions, and build long-term resilience,” said Managing Director and CEO Tareq Refat Ullah Khan.
In an interview with TIMES of Bangladesh, he explained that this shift begins with evaluating risk, allocating capital, and structuring institutional processes. ESG criteria now guide these functions so that major financing decisions consider climate, environmental, and social implications.
BRAC Bank’s commitment to sustainability also extends to its operational practices. Khan described the bank’s transition toward greener operations as a strategic necessity.
At the operational level, it is rolling out comprehensive Green Office Guidelines, which include installing solar systems at the head office and selected branches and ATMs, replacing traditional lighting with energy-efficient
LEDs, and advancing paperless processes under the digitalisation drive. These steps not only reduce energy consumption and waste but also help the bank align with global sustainability standards and strengthen long-term operational resilience.
Financing the future
BRAC Bank’s ESG strategy isn’t just about aligning with global standards; it is about ensuring that sustainability and financial performance go hand in hand.
“Our ESG journey is anchored in the belief that sustainability and financial performance complement each other,” Khan said.
A significant part of the bank’s strategy is allocating capital to sectors that contribute to long-term economic stability and climate resilience. One of the key areas of focus is renewable energy, where the bank has already made substantial investments.
“We financed a 68 MW solar project in Sirajganj, providing $15 million in long-term funding that reduces about 70,000 tons of greenhouse gas emissions every year,” Khan shared.
The bank also supported a 64.5 MW solar project in Pabna, extending $22 million to accelerate clean power generation.
By prioritising energy efficiency and renewable energy, BRAC Bank is positioning itself to reduce portfolio risks while tapping into emerging growth opportunities in green financing.
Purpose through ownership
For BRAC Bank, sustainability goes beyond a financial strategy. It is deeply rooted in purpose, as nearly 46 per cent of the bank’s shares are owned by BRAC, the world’s largest NGO.
“For BRAC Bank, sustainability is grounded in purpose, not in profit,” Khan said, explaining the ownership structure ensures that a significant portion of the bank’s earnings supports grassroots development, education, poverty alleviation, and social empowerment across Bangladesh. “When BRAC Bank grows, the country benefits.”
The bank’s broader sustainability strategy is aligned with national development goals, financing climate-friendly sectors, encouraging responsible business practices, and promoting financial inclusion.
Digital efficiency as environmental infrastructure
BRAC Bank’s flagship digital banking platform, Astha, has become a key driver in reducing its environmental footprint.
The platform, which manages more than Tk20,000 crore in monthly transactions and serves over 11 lakh users, processes 71% of all transactions at the bank.
Khan went on to explain how Astha’s scale leads to significant environmental benefits.With nearly 2 lakh daily active users, Astha eliminates 7.5–10 lakh minutes of manual processing every single day, saving energy, reducing paper use, and lowering the carbon footprint across the branch network.
For Khan, “digital efficiency is a tangible form of environmental infrastructure.”
A discipline-based differentiation
Khan believes that what sets BRAC Bank apart from other institutions is its rigorous discipline and commitment to transparency.
“Discipline, transparency, and global alignment are at the heart of our sustainability approach,” he said.
The bank’s first-mover advantage is clear. It became Bangladesh’s first signatory to the Partnership for Carbon
Accounting Financials (PCAF), ensuring it measures 100% of its financed emissions using PCAF’s internationally recognised methodology.
“The disclosures are officially published on the PCAF platform, setting a national benchmark for transparency,” Khan said.
Additionally, the bank pioneered the country’s first Social Subordinated Bond, fully aligned with the International Capital Market Association principles, and is the first to adopt IFRS S1 and S2 sustainability reporting standards.
Its founding membership in the Global Alliance for Banking on Values (GABV) further strengthens its alignment with international sustainability frameworks.
“These milestones demonstrate that our sustainability practices are not only principle-driven but also methodologically robust and internationally recognised,” said Khan.
Returns that prove the model
“Our philosophy is that sustainability is an investment, not an expense,” Khan said, adding that the strengthened environmental and social risk management, responsible lending, and digitalisation have improved portfolio quality and streamlined operations.
The improvements are treated as financial gains generated through sustainability-focused reforms, and investor behaviour reinforces this strategy.
“Foreign investors hold around 35 percent of BRAC Bank’s market capitalisation,” he said, adding that the bank has crossed $1 billion in market valuation.
These outcomes “confirm that our responsible practices generate measurable financial and reputational benefits.”
A long-view roadmap
In the short term, the bank is focused on expanding sustainable financing to meet national targets, fully integrating Environmental and Social Due Diligence, and Environmental and Social Risk Management into all financing processes, alongside improving energy efficiency across its operations.
“We are embedding ESG criteria into everyday decision-making so that sustainability becomes a fundamental part of our organisational culture,” Khan said. In the medium term, the priority is to cement the bank’s leadership position in sustainable banking.
“We aim to significantly expand our green financing portfolio, particularly in renewable energy,” Khan said, while also focusing on gender inclusion in the workforce and aligning the bank’s governance structure with global sustainability principles, alongside ensuring that leadership accountability reflects the bank’s long-term commitments.
BRAC Bank’s long-term vision is “transformative.”
“We will operationalise a decarbonisation plan that charts the bank’s pathway toward substantial emission reductions across all activities.”
The bank also aims to achieve a balanced gender ratio and maintain full ESG alignment across business lines.
Khan’s final words captured the essence of BRAC Bank’s commitment to the future: “Ultimately, our goal is to establish BRAC Bank as the most sustainable bank in Bangladesh, one that leads through innovation, transparency, and a commitment to long-term national prosperity.”
